Atlanta Investors-Is this a bad area?

I have been looking at Atlanta lately and lots of houses look pretty decent but are real low priced. I know they are probably in bad areas but how bad are these areas? Here is one address:
914 Coleman Street Sw
Atlanta, GA 30310

So is this in a area where I might get murdered or just a real low income area or something I am missing?

Aaron McGinnis

Rehabber · Decatur, Georgia

242 posts
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Dec 15 '11, 07:47 PM

You won't get murdered there...

Provided that you're wearing a kevlar vest and moving with an armed squad of Marines in full daylight.

Pittsburgh is one of the worst neighborhoods in Atlanta. Look elsewhere if you want flips that aren't going to be constantly subjected to vandalism, theft, and home-cooked meth projects.

Joel Owens

Commercial Real Estate Broker · Canton, Georgia

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Dec 15 '11, 09:41 PM

Micheal the pics on the MLS are the ones before the house has been ripped apart.

I looked at investments in the heart of Atlanta 2 years ago.Spent a few months looking at all types of properties. About 80 percent of the time the property looked good in the picture but when you got there in a matter of a few days to a week the place was trashed.

You have to remember for the small commission the REO brokers are making on these it is "cash for trash".Small lots,old houses,very high taxes,and aging city sewer system that is falling apart.

Many of these houses the foundation does waves,electrical and plumbing is stripped,mold,etc.

Smart local investors are buying outside Atlanta in the surrounding counties where they spend a little more but nicer areas and higher rents and lower property taxes.

Joel Owens

Commercial Real Estate Broker · Canton, Georgia

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Dec 15 '11, 09:46 PM

What I meant with REO brokers is they are not going to sit and secure a crap property over and over with the low commission they are making in a high crime rate area.

They get paid a set commission regardless of the price.So whether it stays secure is not a real concern to them.

If they sell a 10k house but make 10% which is 1k the condition doesn't matter to most of them.If a 200k house gets trashed where you make 6k on 3% commission or 3k on where the house gets trashed and sells for 125k the broker would stand to lose a bunch of money in that case on the sale.

You could argue the broker stands to lose money by losing other listings from the bank in more sales but I don't know many brokers that do more than drop a sign with these types of properties.

Michael R.

Real Estate Investor · New York

304 posts
3 awards
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Dec 16 '11, 03:38 AM

Thanks for the advise. The thought that the photos were of the property before it was stripped. Most houses in my local market I see listed with a REO broker look great in pictures- when I go look in person most are trashed and stripped, some are even burned out. THe pictures they post are 5 years old. Seems like false advertising. I never purchased from a REO agent before but I cant really blame them when the commission is so small. Thanks for the advise I think Ill keep looking and maybe come down in a few months and check out the area for myself.

Michael R.

Real Estate Investor · New York

304 posts
3 awards
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Dec 16 '11, 03:39 AM

What are some better neighborhoods around atlanta that are low priced? (if any) I am looking for buy and hold properties.

Eduardo Austin

· Georgia

Donor

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Dec 16 '11, 04:02 AM

That is definitely a bad area, that is a very low income area with crime and prostitution.

If you are interested in buy and hold, I would suggest LIthonia, Austell, College Park, Decatur, Stone Mountain, and most of Gwinnett County.

Aaron Taulbee

Duplex Investor · Marietta, Georgia

11 posts
50 influence

Dec 16 '11, 06:31 AM

Generally, north of I-20 is better, although there are still some rough spots in between areas where home buyers came in during the mid 2000's and fixed up properties. I would not buy anything in Atlanta without seeing the house neighborhood during the day, and at night. Stick to the top end perimeter area and the northern suburbs.

Joel Owens

Commercial Real Estate Broker · Canton, Georgia

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Dec 16 '11, 07:02 AM

Some of those areas we would not stop the vehicle or exit the vehicle in broad daylight when I was looking.No need to go there at night when it's that bad! LOL

When the cops don't even drive the road and want to stay away it's a hint!

Joel Owens

Commercial Real Estate Broker · Canton, Georgia

Pro Basic

2,194 posts
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Dec 16 '11, 07:05 AM

Michael rather than looking at 10k houses that are thrashed and need more repair in a high crime area than the property will ever be worth I would go to areas where you can pick up nice properties for in the 30's to 50's.

Lower property taxes,will appreciate faster,and have better rent growth.

I would rather have one of those than 3 of the trashy properties that never ever turn a cent in profit and cost me money.